Many states assess a personal property tax on certain items of personal property such as motor vehicles, boats, and aircraft. Business personal property taxes—taxes on tangible personal property items that are used to produce income—are often referred to as ad valorem taxes.
In Oklahoma, personal property tax is an ad valorem tax, meaning it is based on the value of the property. This tax applies to tangible personal property that is used to produce income, such as equipment, machinery, and furniture used in businesses. Motor vehicles, boats, and aircraft are also subject to personal property tax in Oklahoma. The tax is assessed annually by the county assessor where the property is located, and the rate is determined by local taxing jurisdictions, such as counties, cities, and school districts. Taxpayers must report their personal property to the county assessor each year for assessment. Exemptions and deductions may be available for certain types of property or for taxpayers meeting specific criteria. It is important for property owners to be aware of filing deadlines and requirements to avoid penalties.